HC dismisses plea to lift attachment of tainted property

Madras High Court has declined to lift the attachment of a Rs 6.47 crore property purchased by textile business group Pothys Private Limited from the family members of an absconding man, who is facing 25 criminal cases.
Justice P N Prakash upheld the Enforcement Directorate's September 2, 2016 order attaching the 12,945 sq ft land in neighbouring Kancheepuram, purchased by Pothys from the wife and daughter of Sridhar.
The man is wanted in connection with 25 cases related to offences ranging from murder to criminal intimidation and is said to be hiding in the Middle East.
"This court cannot step into the shoes of the Deputy Director of ED and appraise the material that formed the basis for initiating action," the judge held.

"The Deputy Director of ED had sufficient reason to believe that the properties sold by Kumari and Dhanalakshmi were fruits of the poisonous tree acquired with the proceeds of crime committed by Sridhar," he said.
But, by then, Pothys had purchased the property and its senior counsel B Kumar questioned the attachment saying it was a bonafide deal for a valuable consideration.

The judge said Prevention of Money Laundering Act (PMLA) was intended to economically suffocate criminals.
"PMLA seeks to fell two mangoes in one stone -- one to send a stern message to offenders that they cannot enjoy the fruits of their labour; two, to dissuade innocent purchasers from entering any deal for purchase of properties from shady characters," he said.

In the long run, people would scrutinize not only the legal title documents of a property, but also would take efforts to find out if their vendor was a person above reproach.
The Judge said Pothy's could appear before the ED's adjudicating authority for remedy.